Savings , Taxation and Development , Information Frictions , Formalization
Abstract:
This thesis consists of three chapter addressing issues in development and public economics. The overarching theme is the question of how to improve economic outcomes for developing countries. In the first chapter, I study this question at the level of micro-level policies for individuals. Employing a randomized control trial, I find that smallholder farmers in Ethiopia are able to substantially increase their savings when provided with a savings technology and a behavioral treatment. The second chapter deals with information frictions when rolling out a policy to an entire economy. In the context of the Ecuadorian tax system, I analyze the drivers of information frictions about newly introduced tax avoidance opportunities. In the third chapter, I analyze general equilibrium effects of introducing a policy to the whole economy. In particular, I study spillover effects of a unique deductions policy in personal income taxes on the tax reporting behavior of self-employed business owners.
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